Snap Inc. (NYSE:BREAK) is one of the AI Stocks Under $20 to Buy Now. On December 19, Guggenheim analyst Michael Morris lowered Snap’s price target to $8.50 from $9, while maintaining a Neutral rating on the stock. Looking ahead to 2026, Morris noted that investor confidence is being dented by expected headwinds to usage growth and core advertising performance lagging behind industry peers. Consequently, the company reduced its daily active user projections for the first half of 2026, indicating the belief that these operational difficulties will continue to be a factor beyond the short term.
In Q3 2025, Snap achieved a major milestone by reaching 477 million daily active users/MAU, which represented an 8% year-over-year increase, while monthly active users/MAU grew 7% to 943 million. Total revenue for the quarter rose 10% to $1.51 billion, driven by a combination of a 5% increase in advertising revenue ($1.32 billion) and a whopping 54% increase in other revenue ($190 million), which is primarily driven by the Snapchat+ subscription service. Snap Inc. (NYSE:SNAP) demonstrated a strong path to sustained profitability by reducing its net loss by more than 30%, lowering it to $104 million from $153 million a year earlier.
Snapchat remains a dominant force in AR, with more than 350 million daily users interacting with AR lenses. The platform’s ecosystem of creators has exceeded 400,000 developers who have created more than 4 million lenses. The company is also doubling down on GenAI; More than 500 million users have interacted with Gen AI lenses, such as the popular AI Face Swap, more than 6 billion times. Additionally, Snap Inc. (NYSE:SNAP) announced Snap OS 2.0, which is a software foundation for its next-generation AR glasses, scheduled to debut publicly in 2026.
Snap Inc. (NYSE:SNAP) operates as an international technology company. The company offers Snapchat, which is a visual messaging app with multiple tabs. The company integrates GenAI and ML into its platform for interactive chatbot experiences ‘My AI’, real-time AR lenses and sophisticated ad targeting tools.
While we recognize SNAP’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
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Disclosure: None. This article was originally published in Internal jumpsuit.